Better customer segmentation allows your businesses to maximize the return of your marketing budget and demonstrate a better understanding of your customers' needs and desires.
More efficient marketing
The more defined your customer segments, the more accurate your messaging can become. Rather than blasting your customers with the same message, clearly defined customer segments allow you to take the information you already have on customers and target them with messages that fit past purchasing and engagement behavior. The result is that customers feel you are talking directly to them and responding accordingly. From a marketing management perspective, it allows your team to measure results more accurately and allocate resources to achieve the best outcomes.
New marketing opportunities
Experimentation is a valuable part of marketing that is rarely discussed. Many businesses believe that marketers should have all the right answers, and as such, marketing experimentation should be unnecessary. This is a fallacy. The most effective marketing strategies change the way we see a product or service. That often means taking an untested approach, product, or service to market. Customer segmentation allows you to test new ideas on more defined market segments, learn as you go, and increase your marketing investment's overall returns.
Customer retention is as or more important than acquiring new customers. Customer segmentation allows your marketing team to break down your overall customer base into more manageable segments, identifying those with greater sales potential and those who churn more often. Armed with this more targeted knowledge of customers' individual needs, marketing teams can then allocate resources and time to deliver the best and most measurable outcomes.
Why many brands don't create more granular customer segments
The more targeted you're messaging and the more defined your customer segments, the better the outcome. The problem is that there is a tipping point where it becomes too costly to go deeper into customer segmentation. The tipping point is where your marketing team are allocating too much time and too many resources to too many customer segments, with too little returns.
The industry average time allocation for creating a single targeted digital marketing campaign is 1.5 hours…and that's if you have easy access to images and brand assets. That doesn't seem like a lot. However, if you have 20 customer segments and send an email campaign weekly, that adds up to 120 hours.
How XL.Today™ makes better customer segmentation more practical
In comparison, a solution like XL.Today™ can reduce the creation of a single campaign to as little as 5 minutes. The model shown above would reduce the time required from 120 hours to under 7 hours. Add to that a simple and visual customer segmentation dashboard and unlimited segmentation, and you have a powerful marketing solution that dramatically increases your capacity to better target customers.
Stay ahead of the curve
Beating your competition requires trying new ideas more often…and XL.Today™ makes this simple. Whether it's a new product, new service, new offer or a new way of marketing your business, XL.Today™ allows you to get your message to market faster. With XL.Today™ market segmentation, you can test new creative and new approaches faster and apply more of those learnings across your marketing. After a few short months, your marketing team will develop an agile marketing approach, experimenting to find the magic formula that works best for your business and your customers. With XL.Today™, experiment with customer segments and content will become a natural part of your marketing approach, delivering happier, more engaged customers and a better marketing ROI.